DuPont Decomposition
Why does ENGINERSIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.0% = 17.6% × 0.67 × 1.87
Latest: FY2026
Profitability
Net Margin
17.6%
4.8% →17.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.67x
0.70x →0.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
2.36x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.1 pp over 5 years. Driven by net margin improving (4.8% → 17.6%), leverage falling (2.36x → 1.87x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 0.70 | 2.36 | 7.9% |
| FY2023 | ₹0Cr | ₹0Cr | 10.4% | 0.76 | 2.24 | 17.6% |
| FY2024 | ₹0Cr | ₹0Cr | 13.6% | 0.69 | 2.10 | 19.7% |
| FY2025 | ₹0Cr | ₹0Cr | 18.8% | 0.59 | 1.97 | 21.7% |
| FY2026 | ₹0Cr | ₹0Cr | 17.6% | 0.67 | 1.87 | 22.0% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.